1. Which of the following highlights the correct order of the stages in the accounting cycle?
   1.  Journalizing, final accounts, posting to the ledger and trial balance
   2. Journalizing, posting to the ledger, trial balance and final accounts
   3. Posting to the ledger, trial balance, final accounts and journalizing
   4. Posting to the ledger, journalizing, final accounts and trial balance
2. The first step in accounting process is
   1. Measurement
   2. Classification
   3. Identification
   4. Recording
3. Transactions recorded in books are of
   1. Non-financial and Quantitative in nature
   2. Financial and Quantitative in nature
   3. financial and Qualitative in nature
   4. None of the above
4. What are the basis of accounting
   1. Cash Basis
   2. Accrual Basis
   3. Mixed Basis
   4. Both A & B
   1. All of the above
5. Outstanding expenses are recorded in which basis of accounting
   1. Cash Basis
   2. Accrual Basis
   3. Both method
   4. None of the above
6. Does cash basis of accounting violates GAAP
   1. No, as it doesn’t follow matching principle and accrual concept.
   2. Yes, It follows GAAP
   3. Yes, it follow GAAP but only in case of few transactions
   4. Both b & C
7. Which doesn’t  relates to accrual basis of accounting
   1. It includes recording of cash Expenses
   2.  It includes recording of outstanding and prepaid Expenses
   3. It includes future expenses also
   4. None of the above
8. Which accounting method is recognised by Companies Act, 2013
   1. Accrual Basis
   2. Cash Basis
   3. Both a & B
   4. Companies Act 2013 has no relation with accounting method
9. The concept of capital and revenue item exist in
   1. Accrual Basis
   2. Cash Basis
   3. Both a & B
   4. None of the above
10. Which statement is true related to Hybrid or Mixed system of accounting,
    1. Revenue and assets are recorded on cash basis
    2. Revenue and assets are recorded on Accrual basis
    3. Expenses and Liabilities are recorded on cash basis
    4. None of the above

MCQs Questions of Class – 11 Accountancy Chapter 4 – Process & Basis of accounting

Answer Key

1. (b)  2. (c)   3. (b)     4. (e)   5. (b)    6. (a)    7. (c)    8. (a)    9. (a)   10.  (a)